Additional L.E. 600 m have been set aside to improve irrigation systems all over the country, including L.E. 200m for embankment maintenance and water canal clearing, in addition to L.E. 400m to finance new investments in this sector.

Other sectors that will see a noticeable increase in financial allocations in the new fiscal year include the health sector. Allocations for free medical treatment increased by about L.E. 300m, while state-funded medical treatment program allocations were raised by 81% (from L.E.1.385 to 2.5bn) in order to settle foregoing fiscal year debts and meet the needs of the increasing number of people benefiting from health services, Ghali said.

Additional appropriations of L.E. 400m will be used to fund the second phase of reforming the salary scales of medical doctors and assistant staff, while L.E. 150m will be earmarked for youth centers and clubs, L.E.40m for the maintenance and refurbishment of houses of worship and L.E.150m to improve mosque imams and preachers' salaries, which would raise their monthly income by about L.E. 250 on average, the minister elaborated.

One the other hand, the overall public budget deficit for the fiscal year 2010/2011, which ends on June 30, will not exceed 8.4% of the total GDP (L.E. 1.198 trillion), Dr. Ghali asserted.

The Finance Ministry is planning to cut this deficit in the State budget (which starts July 1^st) to 7.9%, Dr. Ghali said. This cut is not an easy task as some would imagine, as it would save about L.E. 6.890bn for the Public Treasury. GDP is, therefore, expected to amount to L.E. 1.198 trillion this coming year.

The State budget deficit remains within safe levels, a reflection of the success of the country's financial and monetary policies, and economic reform programs, Dr. Ghali added. The Finance Ministry is now working on prospective budgets for the next three years, to develop indicators for public expenditure, revenues and programs due to be implemented during these years. The aim is to have a tighter control of public expenditure and use these indicators for planning future financial and monetary policies.

As for raising additional funds to finance the increase in public expenditure by L.E. 8.674bn, as envisioned by the People's Assembly, new procedures will be in effect as of July 1, including higher taxes on local and imported cigarettes, and a 5% sales tax on cement, and an 8% sales tax on reinforcing iron bars. The People's Assembly has also imposed a new development duty on quarry licensing, which amounts to L.E. 27 per ton of slate.